Mine got dropped and cracked at the Apple store (Crack is ~2"). The salesman told me that normally that would void the warranty, but since it happened in front of him, they're exchanging mine when the get new stock.

I have had really good luck with replacement iPods under Apple's warrenty - EXCEPT for a cracked screen (4G 20Gb). It was returned from Apple without being repaired - with statement that the damage wasn't covered since it was not a defect, but user "abuse" (dropping it or something).

Of course, they were right, my son had dropped it. I ended up replacing the screen myself. Probably not an option on the touch.

Tonight I replaced my cracked screen. Woo Hoo!
I dropped if face down about 2 months ago, and got a nice diagonal crack along the glass, and figured I could fix it. So off to EBay and bought a screen. Seemed to be easy enough a thing to do.

Now, getting the back off turned into an epic adventure. The videos you see on YouTube make it seem so simple. But after several evenings I couldn't budge the thing, and the plastic tool they give you for the job wore out. Then, 2 nights ago I sat down with a steak knife and went at it one more time, scratching the buggery out of the side of the Touch.
Somehow I wiggled it the right way and *click* one corner separated and from there it was easy.

From there, following the YouTube video wasn't so tough. Alot of the parts, like the battery and little circuit boards are held in with gummy glue, so you have to be very careful tugging them out. Don't be a fool and use a sharp knife to lever up the battery. You'll cut the foil bag surrounding it.

And then there's lots of screws, but it's all doable.

But, then you hit the final step that isn't described anywhere on the Internets, as far as I could find. Getting the glass screen off.
The screen is stuck to the metal frame with a gummy glue. The glue covers the black top and bottom bits, and it doesn't let go, not matter how hard you push. No screws or clips or sockets. Just lots of glue.
Two nights ago I got to this stage and decided it was too tough, reassembled by Touch and found that I had buggered the old screen with all my pushing and prodding. Lots of dead areas where it wouldn't register my fingers touching it.
I had effed up my Touch. Bugger.

So tonight I had nothing to lose. If I stuffed up again, well, the Touch is already dead.
I took it apart, and pushed and pushed on the back of the screen until *crack*. I then proceeded to just brutally rip it out piece by piece. Now the glass is definitely not "safety glass". When it cracks it leaves behind very fine slivers that get into your skin. Do it inside a box or old icecream tub, and clean up afterwards, and don't use your fingers.
But I got it all out, used some turps to clean off the glue.
And it reassembled and works great.

Such a thuggish way to do it.
It anyone knows a nicer way to get the screen off, I'd love to hear it. Some solvent to dissolve the glue?

Moral of the story... DON'T DO IT, unless the cracks in the screen are so bad that it isn't working. In hindsight I should never have done this.

Removing the screen from the original mid frame is a chore and can be done using a hair dryer.
My advice though, if you are going to do this yourself and buy a new digitizer of ebay, then you may as well spend a few more dolars and get the midframe with new adhesive as well. Do the job properly.

I do about 10 of these a week at present and anytime i have had to reuse the midframe the existing old glue needs to be totally removed and replaced otherwise the glass will not sit completely flush with the ipod anymore.

It's just not worth the hassle, get the midframe when you buy the digitizer and reuse your existing home button parts from the old one.

Removing the screen from the original mid frame is a chore and can be done using a hair dryer.
My advice though, if you are going to do this yourself and buy a new digitizer of ebay, then you may as well spend a few more dolars and get the midframe with new adhesive as well. Do the job properly.

I do about 10 of these a week at present and anytime i have had to reuse the midframe the existing old glue needs to be totally removed and replaced otherwise the glass will not sit completely flush with the ipod anymore.

It's just not worth the hassle, get the midframe when you buy the digitizer and reuse your existing home button parts from the old one.

I actually had the digitizer on my 2nd gen Touch replaced under my extended warranty from Wal-Mart. But with the new digitizer my screen is no longer flush with the iPod's bezel anymore! The two opposite bottom and top corners are not level and push in and out slightly too. Is this because the repair was done by reusing the old midframe? So I'm wondering if it's possible to fix the problem by replacing my old midframe and/or digitizer with a complete new set with evenly spread out adhesive?

That's what I need to know. I just crack the screen like 5mins ago at work. I can still use it.( I'm on it right now) better yet, can I take it to the apple store, and see if they can fix it? Without mailing it in?

1) You could always back up your data and get a new iPod Touch off of Ebay. Depending on the version and size, you could probably pick up a used one in good shape for as little as $120.

2) Apple offers repair services for the iPod Touch - including cracked glass. The cost depends on which generation you have and your storage. You can see a complete list here: Apple - Support - iPod - Repair pricing

3) As mentioned, you could buy the parts online and do the fix yourself. A quick search on YouTube for "iPod Touch Take Apart Video" will reveal all kinds of hits. Then go to Ebay and do a search for "iPod Touch screen assembly". I highly recommend getting the full assembly with the midframe and home button already in. It'll cost your around $25 but it will save you a ton of headaches. Trying to swap out the home buttons is a serious pain and not worth the effort. Also, make sure you get the right part! The different screens between generations are NOT compatible.

4) Lastly, if you don't feel comfortable pulling your phone apart yourself or paying Apple a bunch of money to do it for you, there are 3rd party options. In the spirit of full disclosure, I own a small company doing iPod Touch repairs, but there are many other companies out there. A simple Google search might even reveal someone in your city that can do it for you in about 15 or 20 minutes. This repair should definitely cost you under $100.

I have had really good luck with replacement iPods under Apple's warrenty - EXCEPT for a cracked screen (4G 20Gb). It was returned from Apple without being repaired - with statement that the damage wasn't covered since it was not a defect, but user "abuse" (dropping it or something).

Of course, they were right, my son had dropped it. I ended up replacing the screen myself. Probably not an option on the touch.

Did you actually replace it yourself or did you send it somewhere to replace? If so where and how much did it cost?